Deer Run Mine

Deer Run Mine is a mine located near Hillsboro in Montgomery and Bond Counties, Illinois. According to owner the Cline Group, the mine has the potential to produce roughly 8 to 10 million tons per year when the longwall mining is in full production. The estimated life of the mine is expected to exceed 20 years. The coal reserves at the mine are leased to the mining company Hillsboro Energy, an affiliate of the Cline Group.

In January 2011, Natural Resource Partners made its fourth -- out of the planned seven -- purchase of coal reserves at the Deer Run mine. The company bought the reserves from Colt LLC, an affiliate of the Cline Group, for $70 million. Natural Resource indicated that the construction of the new longwall mine is underway, and the company expects to start digging for coal in early 2012. Going forward, Natural Resource expects net income from the mine to exceed $40 million per year from the mine.

This acquisition is part of Natural Resource’s plan to acquire about 200 million tons of reserves in Illinois. To date, Natural Resource has paid $175 million of the $255 million slated for the acquisition. Natural Resource Partners L.P. is principally engaged in owning and managing mineral reserve properties. The company owns coal reserves and coal handling and transportation infrastructure in Appalachia, the Illinois Basin and the Powder River Basin.

Digging begins, despite legal challenge
In April 2011, the Cline Group began digging at the site. The early production is “development coal” that must be removed to allow construction of the underground mine. The mine remains the subject of a 2-year-old appeal of its operating permit. The appeal was filed by a group of landowners called Citizens Against Longwall Mining in early 2009, who contend the longwall mining method to be used at Deer Run will hurt farmland values, filing the appeal after the Illinois Department of Natural Resources approved an operating permit for Deer Run mine. The group argues that longwall mining will damage farmland by causing long-term mine subsidence. Brian Perbix of the Prairie Rivers Network/Sierra Club said opponents are hoping for a decision this summer 2011. He added that opponents believe there is still time to halt the operation. Department of Natural Resources spokeswoman Januri Smith said the administrative review remains in the discovery process and that a timeline has not been set for a ruling.

Citizen Groups

 * Citizens Against Longwall Mining

Mine Data

 * MSHA ID:
 * Operator:	Hillsboro Energy
 * Controller:	Cline Group / Natural Resource Partners
 * Union:
 * County:		Montgomery and Bond
 * State:		Illinois
 * Latitude:
 * Longitude:
 * Production (short tons):	8 to 10 million tons per year (estimated)
 * Coal Type:
 * Mining Method:		Longwall
 * Mine Status:		Projected to begin in 2012
 * Average No. of Employees:

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